KUALA LUMPUR (Jan 6): Bank Negara Malaysia (BNM) will provide another RM2.5 billion through banks and financial institutions to support micro, small and medium enterprise (MSME) financing, with a focus on first-time borrowers, bringing the total fund size to RM34.9 billion. 

To date, BNM has made available RM32.4 billion in concessional financing to support access to financing for SMEs through participating financial institutions, particularly viable micro and small enterprises that face financing constraints.

As part of its push to benefit a wider segment of SMEs, including first-time borrowers and new entrepreneurial ventures, the central bank also plans to transition towards a guarantee-based support model, targeting up to RM10 billion in guaranteed SME loans.

Implemented with Credit Guarantee Corporation Malaysia Bhd (CGC), the scheme aims to share lending risks with banks, making it easier for new and smaller businesses to get loans and improving overall access to financing, according to a statement.

BNM’s Fund for SMEs provides affordable financing to businesses across all sectors and has been enhanced to help SMEs recover, grow, and stay resilient. The fund covers areas such as high-tech and green projects, low-carbon transition, SME automation and digitalisation, agrofood, micro enterprises, tourism and other sectors, including relief and adaptation support.